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43-101
Inferred Resource Area at Dachang East
 It
was as a result of extensive artisanal placer gold mining
at Dachang, that the Qinghai Geological Survey Institute
("QGSI") became aware of the gold potential of the region
in the 1990s. Encouraged by initial results, QGSI completed
a detailed geochemical sampling program covering 340km2
of the anomalous gold corridor, resulting in the discovery
of seven large individual gold anomalies, the largest, referred
to as Anomaly 1, covers approximately 75 km2. The core of
this anomaly covers approximately 5 km2 and is outlined
by gold geochemical values greater that 36ppb gold up to
a maximum of 240ppb gold (approximately 0.240g/t gold).
A subsequent soil geochemical survey completed by QGSI over
the core and surrounding area identified 28 individual gold
zones.
QGSI
excavated trenches across these anomalies and confirmed
that all of the anomalies reflect economically significant
gold bearing zones, which exhibit exceptional continuity
along strike. Trenching exposed and traced individual mineralized
zones along strike for up to 4,700m. The average strike
length of the zones is 1,000m. The mineralization exposed
in the trenches is up to 20.3m wide. The gold grades range
up to 28.1g/t. over individual one-meter sample intervals.
The mineralized zones are open along strike indicating additional
resource potential under the soil-covered areas.
Encouraged
by the very significant trenching results, QGSI completed
approximately 6,000m of diamond drilling designed to intersect
the mineralization at depth below the mineralization exposed
in the trenches. The majority of the drilling was completed
during the 2002 and 2003 summer exploration seasons and
focused on a 2.5km strike length of Zones
9, 10 and 11 or regional anomaly No. 1, which outcrop
in the central portion of the property. The remaining portion
of these zones, exposed by trenching for a further 2.5km,
remains to be tested by drilling. The most significant drill
hole, referred to as ZK11101, intersected 58.2m averaging
5.3g/t gold, which included several higher grade intersection,
the most significant being 25.1m averaging 9.4g/t gold.
Included in this 25.1m interval was a significant intersection
of 22.6g/t gold over 4.3m. Figure
7-8 illustrates typical assay results from the trenching
(prefix TC and CY), pitting (prefix QJ) and drilling (prefix
ZK) along the 2.5km portion of Zones 9, 10 and 11 referred
to above.
In
September 2003 and with amendments March 2004, George
Cargill, Inter-Citic's Independent Qualified Person,
completed an Engineering Report in accordance with National
Instrument 43-101 on the Dachang project. A
PDF version of this report is available here and on
the SEDAR
website. This
report on the Dachang East regional anomaly achieved an
NI 43-101 inferred resource of 1.3-million ounces of gold
(5.7 million tonnes grading 7.0 gpt Au).
The currently defined resource is contained within a 1500m
long gold soil anomaly.
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Detail
of Typical Intersections on Zones 9, 10 and 11
Typical
assays from various mediums on the western portion
of Zones 9, 10 and 11. In this image "ZK" refers to
drill holes "TC" and "CY" refers to trenches and "QJ"
refers to exploration shafts.
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